General Motors to Reduce Dealership Network by 1,124 - Pontiac G8 Forum: G8 Forums - G8Board.com
 
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post #1 of 10 (permalink) Old 05-20-2009, 12:45 PM Thread Starter
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General Motors to Reduce Dealership Network by 1,124


General Motors will cut 1,124 dealerships loose by October of 2010. The struggling automaker on the verge of bankruptcy sent letters out to the dealerships last week as it searches for ways to reduce it's current dealer network of 5,969 to just 3,600.

GM says it will not renew dealership agreements with the 1,124 companies when their contract renewal comes up in October of next year.

The dealerships being cut are considered to be poor performers and accounted for just 7 percent of GM's U.S. sales last year.

Another 470 dealerships are also scheduled to be let go as GM parts with the Hummer, Saab and Saturn brands. An additional 35 stand-alone Pontiac dealerships will also be cut.

Those dealerships not already notified aren't necessarily safe, however, as the remaining 4,300 stores is still 700 over the 3,600 cap.

The news of GM's numerous dealership closings came just one day after Chrysler announced it would drop 789 U.S. dealerships.

More: General Motors to Reduce Dealership Network by 1,124 on AutoGuide.com
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post #2 of 10 (permalink) Old 05-20-2009, 01:59 PM
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Maybe they'll just have to "make do" with 4,300.
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post #3 of 10 (permalink) Old 05-20-2009, 03:15 PM
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Maybe they'll just have to "make do" with 4,300.
Oh please, oh please, oh please

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post #4 of 10 (permalink) Old 05-29-2009, 08:56 AM
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There is this lady that owns a Chrysler and Chevrolet dealership not too far away from my home. She has lost both of her car lines. And the funny thing, according to her, is that they have never lost money in the past 20 years of ownership even with this recession. Why on earth would you want to close any profitable dealer? I know this is not the first or the last thing to happen like this but it is ridiculous.

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post #5 of 10 (permalink) Old 05-31-2009, 09:47 AM
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Mario1956... In line with your comment... There are reports surfacing that a large percentage of the Chrysler dealerships being closed are owned by folks who have made large contributions to the RNC. Not sure if this is true - only time will tell - but the idea of Obama's administration actually punishing citizens who do not think like they do is not only absurd, but criminal and dictatorial as well. Let's hope an act of thuggery such as this is not the case, but given the current status quo in Washington, I'd say we better all keep our eyes on this AND the GM closings as well.
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post #6 of 10 (permalink) Old 06-02-2009, 01:59 PM
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There is this lady that owns a Chrysler and Chevrolet dealership not too far away from my home. She has lost both of her car lines. And the funny thing, according to her, is that they have never lost money in the past 20 years of ownership even with this recession. Why on earth would you want to close any profitable dealer? I know this is not the first or the last thing to happen like this but it is ridiculous.
What were her customer satisfaction ratings? How close are her dealership(s) to dealerships of those franchises that are selling substantially more?
It would seem that GM is weeding out dealers they would have loved to eliminate for a long time but couldn't due to state franchise law restrictions.
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post #7 of 10 (permalink) Old 06-03-2009, 10:28 AM
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Mario1956... In line with your comment... There are reports surfacing that a large percentage of the Chrysler dealerships being closed are owned by folks who have made large contributions to the RNC. Not sure if this is true - only time will tell - but the idea of Obama's administration actually punishing citizens who do not think like they do is not only absurd, but criminal and dictatorial as well. Let's hope an act of thuggery such as this is not the case, but given the current status quo in Washington, I'd say we better all keep our eyes on this AND the GM closings as well.
Should I get my tinfoil hat ready?

Do not take my comment to say that I don't believe it could happen. I would not be the least bit surprised. I'm sure that we won't hear any more of this though, because even if it were true, the mainstream media would suppress it and Obama would probably be able to convince most of the simple minded public that it was OK, even if it was leaked out.
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post #8 of 10 (permalink) Old 06-04-2009, 04:34 PM
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Originally Posted by Limeman
Mario1956... In line with your comment... There are reports surfacing that a large percentage of the Chrysler dealerships being closed are owned by folks who have made large contributions to the RNC. Not sure if this is true - only time will tell - but the idea of Obama's administration actually punishing citizens who do not think like they do is not only absurd, but criminal and dictatorial as well. Let's hope an act of thuggery such as this is not the case, but given the current status quo in Washington, I'd say we better all keep our eyes on this AND the GM closings as well.


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Should I get my tinfoil hat ready?

Do not take my comment to say that I don't believe it could happen. I would not be the least bit surprised. I'm sure that we won't hear any more of this though, because even if it were true, the mainstream media would suppress it and Obama would probably be able to convince most of the simple minded public that it was OK, even if it was leaked out.
Even if true, there is probably a simpler explanation. I suspect that a larger percentage of car dealership owners (like most small business owners) are Republicans than Democrats, and dealership closings will proportionally affect more Republican contributors.

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post #9 of 10 (permalink) Old 06-04-2009, 05:11 PM
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[/I]
Even if true, there is probably a simpler explanation. I suspect that a larger percentage of car dealership owners (like most small business owners) are Republicans than Democrats, and dealership closings will proportionally affect more Republican contributors.
I'd hazard a guess that the majority of business owners of all types and sizes lean more towards Republicans. At least unless they're so filthy rich they can afford to throw their money away.

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post #10 of 10 (permalink) Old 06-04-2009, 06:01 PM
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I'd hazard a guess that the majority of business owners of all types and sizes lean more towards Republicans. At least unless they're so filthy rich they can afford to throw their money away.
That's preposterous. Everyone knows the only people who support Republicans are "Corporate Greedies on Wall Street" and "Oil Tycoons". No "Hard Working Main Street" person would support the Republicans!

Don't you know that if everyone who just drink the kool-aid and smoke the peace pipe that everything would be fine? We have "Hope" and "Change" now. Now we own our failing corporations and don't buy their cars, as opposed to just not buying them!
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